The G20 Osaka Summit will be held from June 28 to 29, 2019 in Japan. The G20 includes a list of 19 countries and the European Union, which makes global policies related to the economics of the world.
The FSB (Financial Stability Board) has submitted a report to the members which highlighted the stand of cryptocurrencies in the current global economy. According to their reports, the size of the cryptocurrency market at present is significantly small to cause any significant effect. However, they must be regulated and also considered the option to introduce a ‘new registry’ for cryptocurrency Exchanges all over the world. According to the reports by FSB,
This assessment in part reflected the small size of crypto-asset markets relative to the broader financial system. The FSB also noted that this assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the financial system.
They plan to establish solid relationships between remittance providers and the banking system of the world. Cryptocurrency, because of its uncorrelated nature, has offered many Latin countries and the Philippines workers cheap mode of money transfers through cryptocurrencies.
Central Bank Issued Cryptocurrencies, and Financial Risk of Crypto-Assets
On Central banks releasing their cryptocurrencies, the report suggested that there is a long way before they go down that road; somewhere between 3 to 10 years. Moreover, according to their preliminary study, a Central Bank Digital Currency (CBDC) is only a concept that is being researched at the moment and nothing else. The reports included that,
It also notes that most central banks appear to have identified the challenges of launching a CBDC, but are not yet convinced that the benefits (mainly of enhanced payments safety and efficiency) will outweigh the costs.
Hence, the only problem that currently remains is the investment, use, and speculation around these cryptocurrencies. The committee will identify the risks involved with a stake in crypto-asset and the associated effect on the world economy. The report suggested that,
In 2019, IOSCO will also study issues concerning investment funds with exposures to crypto-assets and will consider ways to provide investor education and material for retail investors who may wish to invest in crypto-assets.
The G20 Finance Ministers and Central Bank Governors have received a copy of the report and would be discussing the same in their meeting on June 8-9 in Fukuoka, Japan. The primary topic of discussion will be a regulatory approach to investment and filling the appropriate loopholes with cryptocurrencies that leads to money laundering.
There are more significant economic problems that the world is currently facing. Do you think cryptocurrencies will attempt at solving at least some of them? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com